80.2K

Verified Solution

Link Copied!

please asnwer question b

You are advised to spend 60 minutes answering the questions in this booklet. Notes: Ignore GST for all calculations. For any required calculations, you must provide detailed and labelled workings. Labelled workings may be assessed Bridget started the business of Barking Mad who specialise in making healthy, preservative free dog treats Bridget makes and sells the treats at weekend markets from a caravan which she converted to include cooking facilities when she first started the business. Bridget stores the caravan at her house and manages the business from her home office. In the last 6 months, Barking Mad, have extended their sales through selling online. Bridget estimates approximately 20% of Barking Mad's current sales are online and this continues to grow. Current average total sales are 140 packets per week (which includes the online and weekend market sales). Bridget estimates that she can make 190 packets of treats per week given the time and esources she has available. For all calculations assume 4 weeks per month QUESTION ONE (a) The selling price for one packet of dog treats from Barking Mad is $4 and the variable costs of ingredients and packaging are $1.85 per packet. Fixed costs include expenses such as interest on loan, advertising and insurance. These total $846 per month Calculate the breakeven number of packets for Barking Mad per month v 190x4=760-nout procket thats 760x4 5048 1406 $7634.00 1.851190 351.5 351.5x4-1406 zodp) t.46:p) packets per month (b) Bridget would like to take drawings of $120 per week from Barking Mad. Calculate the minimum number of packets of dog treats she would need to sell per week to achieve this without dropping below break even. packets per week

Answer & Explanation Solved by verified expert

See Answer